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State Farm announced a nearly 27.2% hike in homeowners insurance premiums across Illinois, translating to an average annual increase of approximately $746 per policy. The insurer attributes this spike to escalating costs linked to climate-related damages—particularly, extreme hail storms prevalent in the region—alongside rising construction expenses. State Farm's rationale hinges on substantial catastrophe losses, with Illinois experiencing catastrophic claims that outpace their projections. The company reports that in 2024, they’re paying out roughly $1.26 for claims for every dollar collected—a clear sign of financial strain.